Waterborne Coating Additives Market Forecast to Reach $5.3 Billion by 2026

Waterborne Coating Additives Market is forecast to reach $5.3 billion by 2026, after growing at a CAGR of 6.2% during 2021-2026. Waterborne coating additives are agents that are added to enhance the consistency and efficiency of waterborne coatings as an integral component. Acrylic copolymer coatings have excellent light and UV stability, clarity, high colorability, and chemical, fume, and weathering resistance. Acrylic-based coatings can be used on a variety of surfaces, including plastics, wood, metal, glass, and more. Due to high surface water stress, the dispersion of the pigments present in the waterborne coatings is difficult. Therefore, these coatings require an external agent to reinforce the bond between them and the resins present in them, thereby supplying the waterborne coating with additional properties. Because of the development of this sector, the main reasons include an improvement in the construction and infrastructure, furniture, and automotive industries. In addition, continuous investment in R&D, through various technologies and materials, is changing the market. Key Takeaways Asia-Pacific dominates the Waterborne Coating Additives market owing to expansion in infrastructure development and growing end users of this market in developing economies such as China and India. Low toxicity and better indoor air quality offered by the waterborne coating additives are raising the demand for the waterborne coating addditives market. Modified Acrylic Copolymer is a polymer or copolymer made up of acrylic acid, methacrylic acid, and one or more of these acids' esters. The market drivers and restraints have been assessed to understand their impact over the forecast period. The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The other key areas of focus include the various applications and end use industry in PVC Additives market and their specific segmented revenue. Waterborne Coating Additives Market Segment Analysis - By Type Rheology Modifiers held the largest share consisting of 35% in the Waterborne Coating Additives market in 2020. Additional features such as wetting properties and health or environmental benefits such as suitability for VOC, odor, APEO and heavy metal-free formulations are given by rheology modifiers. Rheology modifiers effectively minimize coatings' dripping and spattering. Sag resistance after application is enhanced by a rapid yet regulated increase in viscosity. They also prevent pigment sedimentation during transport and storage of the coatings in a reliable manner. Rheology modifiers are classified into two main categories such as organic and inorganic. Most organic rheology modifiers are surface active; in addition, during film formation they can be part of the polymeric film matrix. The differences in the chemical composition of these rheological modifiers are extremely flexible. Organoclays, organically modified laminar silicates, are the most commonly used modifiers of inorganic rheology and are used in the paint and coating industry for many purposes. Hectorite and bentonite are the principal members of laminar- or phyllo-silicates. Waterborne Coating Additives Market Segment Analysis - By Application Wood Coatings has been the primary market consisting share of 38% for Waterborne Coating Additives in 2020. There are numerous factors for the popularity of wood coatings for wood applications. One of the factors is their high level of quality and their perfect fit with the natural properties of wood. They combine outstanding resistance to solvents and chemicals with unique toughness and flexibility. Wood paint coatings, stains, and sealers help to protect it from rubbing, staining, staining, and other wear and tear. They retain the hue, texture and gloss they like. Coatings can also improve paint and sealer protection and sustainability. Indoor Air Quality (IAQ) can be compromised by invisible particles given off by wood paints, which is why customers and regulatory bodies are right to drive the industry towards lower-VOC formulations. Exterior wood coatings may have a similar environmental effect, which is causing a steady change away from solvent-borne coatings to water-borne alternatives. Waterborne Coating Additives Market Segment Analysis - By End Use Building and Construction industry has been the primary market for Waterborne Coating Additives in 2020 growing at a CAGR of 7.2%. Over the period 2013 to 2018, M&A activity in the construction sector steadily increased up to 484 deals recorded in 2018, up from 273 deals recorded in 2013. North America, Europe and Asia are the regions with the most dominance in terms of the number of deals entered. Europe and Asia show decline in construction deals over 2018 compared to 2017, while North America shows a sharp growth in total deals recorded for the same year. With growing populations, urbanization, and the fact that approximately 75% of the infrastructure that will occur in 2050 is yet to be built and it is predicted that the building industry will only grow, thereby offering a major incentive to increase its productivity and shift into a low-carbon future. In 2020, the global economy was in severe slowdown mode amidst deepening credit crunch, upsetting developmental targets of economies and COVID-19 pandemic across the world. The COVID-19 pandemic has reduced investment in construction related projects in the range of 13% to 30% which will have significant impact on Gross Value Added (GVA) and employment in this sector. Since the construction sector is primarily dominated by infrastructure projects, the current levels of uncertainty are expected to seriously hit the sector. Waterborne Coating Additives Market Segment Analysis - Geography APAC dominated the Waterborne Coating Additives market with a share of more than 40% in 2020, followed by North America and Europe. With rising demand for plastics and growing construction and construction industries in countries such as China, India and Japan, the use of waterborne coating additives is rising in the region. The demand in these regions are expected to report the highest CAGR during the forecast period. These growing industries are anticipated to fuel the demand for Waterborne Coating Additives during the forecast period. In addition, the booming construction industry in countries like India, China is contributing to the demand for Waterborne Coating Additives sector, which in turn propels the growth of the Waterborne Coating Additives market. In developed countries, the construction sector is mature relative to the construction sector in emerging economies, which is rising significantly, fueled by the rising population and increasing urbanization. It is projected that by 2021, China and India will together account for about 40% of the global construction industry. These factors will fuel the market to grow at highest position. Waterborne Coating Additives Market Drivers Incorporation of Advanced Materials will Augment the Market Growth Nanobased additives are well established in coatings. It is well known that the real surface area increases significantly as the particle size reduces, depending on geometrical considerations. Therefore, as nanoparticles are used, advantages that depend on the surface area of active ingredients are greatly enhanced. Limited concentrations of such active additives can be very effective, making a lower percentage or even sub-percentage range of the use of such materials as an additive. In addition, since the visual quality is unchanged, these materials may be used for transparent and shiny coatings. In drying process of Nanobased additives, the film’s resistance properties increase steadily as determined by drying time recorder, pendulum hardness, blocking characteristics or water resistance tests. If the crosslinking occurs sufficiently rapidly, during the drying process it can increase the resistance properties, resulting not only in higher final resistance properties, but also in earlier times reaching a given film durability. Stricter Regulation is Driving the Demand for Waterborne Coating Additives There are some drawbacks of waterborne coatings. The need for lower VOC emissions, and thus the use of waterborne solutions, is motivated by tighter regulations. Moreover, in the application process, waterborne coatings are less dangerous, are not flammable, and equipment is washed safely. Real development and wider supply of waterborne solution has resulted in substantial R&D activities on waterborne coating additives. Furthermore, consumers are demanding the availability of waterborne products that are perceived as more ‘green’ than solvent borne alternatives. Waterborne Coating Additives Market Challenges Complex Manufacture Restrict the Market Growth Waterborne coatings are high-tech materials that are difficult to formulate and fragile. This condition raises the need for a more comprehensive toolbox to balance the waterborne coatings' different performance and handling requirements. Another advanced class of materials includes aqueous dispersion additives based on inorganic nanoparticles that expand the formulator's toolbox for waterborne coatings. Decline in the Growth of End-use Industry can Restrict the Market In recent times, the construction industry has faced many serious challenges which has impacted its growth. Factors such as lack of innovation and delayed adoption, informal processes or insufficient rigour and consistency in process execution, weak project monitoring and little cross-functional cooperation have severely impacted. These factors has restrained the construction industry growth. Waterborne Coating Additives Market Landscape Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Waterborne Coating Additives market. Major players in the Waterborne Coating Additives market are Akzo Nobel NV, Allnex Netherlands B.V., BASF SE, Belami Fine Chemicals Pvt. Ltd., ALTANA and Others. Acquisitions/Technology Launches/ Product Launches In October 2020, Dow Chemical Company launched three new-generation performance additives based on silicone chemistry supporting high durability, longer-lasting, more sustainable waterborne wood coatings. DOWSILTM 211S Additive is a new low-cyclic, ultra-high molecular weight silicone delivered in a waterborne system that improves the performance of marine resistance, slip and block resistance, thus helping to allow wood coatings to be more durable and longer-lasting. The other launched product are DOWSIL 107F Additive and DOWSIL 402LS Additive.